Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1887-09-04
AFTER THE DEAL
How the Sale Of the B. 4 O. Affected the
Financial World.
OF The TELEGRAPH.
George Gould Discusses the Situation anC
Probable Results.
THE EFFECT SEEN ON CHANGE

New YORK, September 3.-The devel-
opments published this morning regarding
the B. & o. negotiations were a complete
surprise to the operators in the stock mar
ket, but they all formed decision to buy
everything on the list at the opening Of the
exchange, and prices moved up with unpre-
cedented rspidity. The excitement in
the board was intense and brokers
bid Ic above the previous sales in
order to get stock ahead of their competi-
tors. The principal gain was made in
Reading, which at one time showed an
advance over Fridays close of 81, and
Manhattan recorded gain of 81. Toward
the end of business the excitement subsid-
ed and the impression began to grow that
the benefit to accrue from the contract was
over estimated.
The Baltimore and Ohio affairs are
the talk of Wall Street to-day.
In the office OF ]. Il. Maxwell,
president of the New Jersey Central
railroad, it was said this morning that the
recent disposition of the Baltimore and
Ohio railroad was a good scheme and
would be means of producing harmony
all around. The cutting of rates war which
always ragged while Mr.. Garrett was at the
helm would be thing of the past; that the
Western Union would get possession of the
B. & .. Telegraph Company was believed
at this office, and the same belief was ex-
pressed at the Office Of the Postal Tele-
graph Company.
One OF the heaviest operators in the
street said after the close: There is no
benefit to be gained from the settlement
except that which might accrue to the
creditors of the B. K D. They are essen
tally the same parties who have taken the
preferred stock and the bonds, and it is
simply matter of bonding the floating
debt. This may have saved the B. & o.
FROM going into a receivers hands
on account of the floating
debt, but that is all that has been done.
Rates cannot be advanced one hundred
per cent, as was the case when the West
Shore settlement was made. As far as a
| telegraph settlement is concerned, that Is
further away now than ever. The B. & o.
| is now in strong hands and will be run in
conjunction with the Pennsylvania and
| Reading, for the benefit OF the
latter, and if Gould buys the telegraph
system it will beat the syndicates terms
and there may be fight of bears before a
consolidation is made.
Vice president DeCastro, OF the CONNER
cial Cable Company, was averse to talking
on the matter He said that Mr.. Mackay
was still in San Francisco and had no in
tention of coming to this city for some
time. The negotiations with Mr.. Gould
had not been renewed, but that would
not affect the land lines. Even though
Gould should get the B. 4 o. telegraph
system the position of the Postal Company
| would not be wrecked but instead materi-
ally strengthened, as il would then be the
only opposition line The stories to the
effect that Mackay had signifed hislwillins-
ness to raise the cable rates to so or 90
cents per word, provided Gould furnished
the money to pay the rebate promised by
Mackay, he pronounced false. One OF the
reasons for holding TO the 40 cent rate was
that if that rate was established no new
competition could be organized and live,
while with 90 cent rate it was probable
that new cables would be laid ut once and
new war inaugurated.
J. Pierrepont Morgan said that the pre-
liminary contract signed yesterday was the
only one necessary, and that no other
would be drawn up He said that it was
the intention to sell both the telegraph
and sleeping car plants and franchises as
soon as it could be fayorably accomplished.